The Jakarta property market, especially the market for office and residential properties, has continued to slow down due to weak demand since 2015.
In the first quarter of 2017 the rent for Grade A offices in the central business district area fell by 4.7 percent quarter on quarter (q-o-q) with an only 73 percent occupancy rate, according to data from property consultant Jones Lang LaSalle.
Meanwhile, rent of non-CBD offices in TB Simatupang also posted a 1.4 percent q-o-q decrease with a 76 percent occupancy rate.
"Rents will keep falling in 2017 and 2018. This will continue up to 2020 before picking up again in 2021," Jones Lang LaSalle Indonesia head of research James Taylor said in Jakarta on Wednesday.
Meanwhile, the residential market has also not been improving and is expected to continue weakening this year.
The 20 percent luxury tax for properties above Rp 10 billion (US$750,000) has continued to reduce the demand for condominiums.
"The average sales rate is 67 percent, compared to 80 percent in the middle of 2015. But it is still better than other countries in Asia," Taylor said. (bbn)